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France adjusts consumer prices and benefits

The second half of 2013 brings a raft of changes to French consumers and taxpayers on Monday. From VAT and mobile phone charges to tobacco and health insurance, The Local breaks down what’s up and what’s down in France, starting on July 1st.

France adjusts consumer prices and benefits
Mobile roaming charges, access to universal health care, jobless benefits, and the price of a pack of cigarettes: how have they all been affected by across-the-board changes in France.

Mobile phone charges

This one could have the most immediate and consistent impact on consumers. An EU Commission project to eradicate roaming charges in Europe for mobile phone users by 2014 begins on Monday.

That means anyone travelling home to the UK or Ireland, or visiting France, or indeed moving about throughout the EU, can expect drastic cuts in the cost of communicating with your mobile phone.

Downloading data or browsing the internet on your smartphone now costs a maximum of 45 cents per megabyte, a 36-percent drop from last year.

Making calls between EU countries will now set you back 24 cents per minute, a 17-percent decrease from 2012, while receiving calls costs seven cents per minute – 12.5-percent cut.

The cost of sending an SMS, or text message, drops 11 percent from last year to eight cents, though none of these pricing changes take into account VAT.

Unemployment insurance

For those starting a CDD (contrat à durée determinée) or temporary contract, on or after Monday, employers will pay more towards their unemployment insurance.

The employer’s contribution will increase from four percent to seven percent for jobs lasting less than one month, to 5.5 percent for jobs lasting more than three months, and to 4.5 percent for ‘CDD d’usage’, which apply to specific jobs in, for example, the creative and audiovisual sectors.

Unemployment benefits

As the ranks of the unemployed in France swell to 3.26 million, Monday brings some much-needed good news.

Unemployment allowance for around 1.5 million of those receiving benefits will increase by between seven and  17 cents per day.

The increase, which will affect two thirds of those currently receiving jobless benefits, means payments will go from the equivalent of €28.21 per day to €28.38, for those on the lowest allowance.

Cost of tobacco

As The Local reported in June, the cost of a pack of cigarettes in France will rise on Monday by 20 cents, with a packet of rolling tobacco now 40 cents more expensive.

Health Minister Marisol Touraine has forecast a further 20-cent hike in October, meaning that most packets of cigarettes will break the seven-euro barrier by this autumn.

Wider access to universal health care

The income ceiling for access to France’s CMU (couverture maladie universelle), or universal health care system, will increase significantly starting from Monday, by 8.3 percent.

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What changes in France in April 2019

Here's what changes in France in April.

What changes in France in April 2019
A price cap has been introduced on certain dental treatments. Photo: AFP

April 1 marks the end of the 'winter break' when tenants who are in rent arrears cannot be evicted, so eviction procedures for non-payment of rent or utility bills will resume today. According to anti-poverty charity Fondation Abbé Pierre, 15,550 people were evicted with the assistance of the police in France in 2017.  

READ ALSO Everything that changes in France for 2019


Car mechanics are now legally obliged to offer customers the option of second hand parts. Photo: AFP

Gas prices
 
In good news, gas prices have fallen, albeit not by much. According to the Energy Regulatory Commission, the fall equates to  -0.7 percent for those who use gas for cooking, -1.3 percent for those who have a dual use cooking and hot water, -2.2 percent for homes which are heated by gas, and -2.5 percent for households equipped with small boilers.  
 
Motoring
 
Getting your car fixed could potentially be cheaper from today, as mechanics are now legally advised to offer motorists the option of having parts replaced with second hand items, which can be 30 to 50 per cent cheaper. The car owner then makes the decision on whether to get a new or second hand part.
 
Health
 
In healthcare, the price of certain dental procedures have been capped; The price of a zirconia crown on a visible tooth can now not exceed €480 while a metal-ceramic bridge on incisors will now cost a maximum of €1485.
Price controls have also been added to wigs for cancer patients, with a greater level of reimbursement and a price cap on synthetic wigs.
 
There has also been a change to the ceiling for the allocation of free medical care, the Couverture maladie universelle complémentaire (CMU), from €8,810 a year to €8,951 a year for a person living alone. For two people living together, the ceiling is €13,426.
 
Benefits
 
There has also been a small rise in certain types of benefit, with a 0.3 per cent rise in certain types of family allowances, as well as disability benefits for some people and workplace accident pensions.
 
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